When you have multiple offers to choose from as a seller, all the cards are in your hand from a negotiation standpoint. Yet the decision between these offers shouldn’t be made lightly. If you find yourself in this position, there are certain steps you should take when examining your choices to make sure that you select the best deal. The first thing you should do? Thank your agent for helping you into this position.
After that, it’s time to consider the prices. This is a crucial aspect of each offer, but it shouldn’t cause you to dismiss all other factors. Look at all of your offers side by side and consider the different contingencies, timelines, and terms that are in play.
For example, if you’re moving across the country in 30 days, you will likely be interested in different contract terms than someone who’s just moving between neighborhoods. The amount of time the closing process will give you to move into your next home, per the terms of the offer, is an important point to consider.
You must look at the buyer’s financing terms. A cash offer and a financed offer will have different contingencies.
Also consider whether the buyer pre-approved or just pre-qualified? A pre-approved buyer should thought of as on the same tier as a cash buyer, since their offer is likely only contingent on an appraisal and appropriate title.
You need to also consider how much they are putting down for their earnest money deposit. With how fast things are moving in our market today, it isn’t uncommon to see buyers get cold feet. Earnest money is a good measure of a buyer’s commitment to a deal. And this is essential, because you don’t want to take your home off the market only to have the buyer back out after the inspection.
Finally, consider all contingencies. These can have a considerable impact on your transaction, so make sure you have a thorough conversation with your agent about the terms and conditions of each offer you receive.
Remember: If your listing receives multiple offers, you hold the cards. You should negotiate the terms that best suit your goals. Just make sure that you don’t overlook anything when examining each contract.
If you have any additional questions about this or are interested in buying or selling, please feel free to reach out to me. I look forward to speaking with you soon.